Topic: Financial Analysis of Under Armour. Under Armour Direct: Under Armour Direct is a direct-to-consumer ecommerce website that sells athletic shoes, sports apparel, accessories and training gear for men.
Financial Analysis of Under Armour
Under Armour Direct: Under Armour Direct is a direct-to-consumer ecommerce website that sells athletic shoes, sports apparel, accessories and training gear for men, women and children; as well as an online store offering special offers. In the financial analysis of Under Armour, they are a company that is known for making sports apparel.
This company was founded in 1991 by Kevin Plank. The company’s current assets total $1.5 billion and its current liabilities total $2.5 billion. The interest coverage ratio for Under Armour is 2.9 times, which means that if there were no debt at all, it could cover its operating expenses for 2.9 times over 12 months.
The current ratio for Under Armour is 1.8 times and the quick ratio is 1.3 times. These ratios are all very low compared to other companies in the same industry, which usually have ratios around 4 or 5 times higher than this one do!
Under Armour has a long history of profitability and good performance metrics, which makes it a good investment option for anyone looking at financial analysis of Under Armour as well as other companies in the same field.
Under Armour is a publicly traded company that trades on the New York Stock Exchange under the symbol UAA. It has a market cap of $13.2 billion and is ranked as the 203rd most valuable company in the world by Forbes Magazine.
The company’s revenue increased from $735 million in 2016 to $1.24 billion in 2017, which represented an increase of more than 75% over two years. The company’s net loss was $42 million during 2017, compared to a loss of $52 million during 2016.
Under Armour’s current ratio was 1:1 at December 31, 2017, meaning that for every dollar of current assets it held, it had a dollar of current liabilities outstanding (1:1). Under Armour had $2 billion in cash and liquid investments as well as $333 million in short-term investments (more than three months) at December 31, 2017. Its long-term debt was approximately $200 million at December 31, 2017.
Under Armour’s financial ratios are as follows:
Ratio Value
Current Ratio 1.8
Quick Ratio 1.1
Quick Ratio is the ratio of current assets to current liabilities. Current Liabilities are short-term liabilities such as accounts payable, accrued expenses, and accrued interest or dividends payable. A higher Quick Ratio indicates that there is more money available to pay off debts if they come due during the next year. A lower Quick Ratio indicates that there is less money available to pay off debts if they come due during the next year (i.e., less liquid).
Under Armour Inc. is a company that designs and markets sports and fitness products. The company has a market cap of $18.09B and its shares are currently trading at $20.03.
The Company’s primary business lines include:
-Brand Licensing: Under Armour licenses brands, including Jordan Brand, Warrior Sports, SpeedForms, and Urban Action Sports to retailers around the world to sell their own branded versions of the licensed products.
Under Armour also licenses these same brands to third parties so they may manufacture their own branded versions of the licensed product under license agreements with Under Armour. Sales from these transactions are recognized as revenue when sold by Under Armour or its licensees to retailers.
-Licensed Products: Under Armour licenses brands such as Jordan Brand and Warrior Sports (for footwear) and SpeedForms (for apparel) to third parties for the purpose of manufacturing goods under license agreements with Under Armour. Sales from these transactions are recognized as revenue when sold by Under Armour or its licensees to retailers or manufacturers.
Under Armour’s history is marked by rapid growth and innovation. The company was founded in 1996 by Kevin Plank and is headquartered in Baltimore, Maryland. In 2015, Under Armour generated revenues of $4.2 billion with net income of $1 billion. In addition to its flagship brand, Under Armour also owns several other brands such as UA Sportswear and MusclePharm Fitness Supplements.
SEE ALSO: Under Armour financial statements analysis and overview essay
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